Technical outlook and chart setup:
As depicted in the 4H chart view here, the price action since 1.4670 can be defined as consolidation. The single currency pair has been confined between 1.47 and 1.4950 price band since then and needs a clear breakout of either of the levels to trade with conviction. Higher up resistance levels are placed at 1.5050 and 1.5150, while support is at 1.46 and 1.45 respectively. As seen here, prices did manage to breach the 1.47 mark for a meager 20/25 pips, but stayed above the counter trend line of support. Keeping these facts in mind, it is recommended to cover the short positions taken earlier.
Trading recommendations:
1. Conservative: Cover short positions if taken earlier. Flat for now.
2. Aggressive: Go long again, stop at 1.4650, target open.
Good luck!
The material has been provided by Instaforex Company - instaforex.com
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